Global Marketing Management
9th Edition
by Masaaki Kotabe
Complete Chapter Solutions Manual
are included (Ch 1 to 20)
* There is no IM available by publisher
for Ch 16
** Immediate Download
** Swift Response
** All Chapters included
** Long Cases Answers
, CHAPTER 1
GLOBALIZATION IMPERATIVE
BRIEF OUTLINE
1. Why Global Marketing is Imperative
2. The Fluid Nature of Global Competition
3. Globalization of Markets: Convergence and Divergence
4. Evolution of Global Marketing
5. Appendix: Theories of International Trade and the Multinational Enterprise
CHAPTER OVERVIEW
In today’s business world, marketing products and services around the world,
transcending national and political boundaries, is a fascinating phenomenon. Growth in
international financial flows (which include foreign direct investment, portfolio
investment, and trading in currencies) has achieved a life of its own. World merchandise
exports in 2008 reached $16.3 trillion, up from $6 trillion in 2000. Despite the sharp drop
of world merchandise exports down to $12.5 trillion in 2009, total merchandise trade
volume bounced back to US$17.7 trillion in 2017. Nevertheless, the global economic
growth rate reached a stronger than expected 3 percent in 2017 -- a notable recovery from
a post-crisis low of 2.4 percent in 2016. These numbers are expected to increase as
barriers to international trade and financial flows get lower and lower.
Though the tremendous amount of money spent on international trade may be new, the
trade itself is as old as man. Early recorded history is full of stories of travel and trade
adventures. The Silk Road is one of the best examples which once connected East with
West from Xian (China) to Rome (Italy).
The landscape for international trade is continually evolving. World trade has grown
from $200 billion to $19 trillion in the last 40 years. Particularly, the growth of world
trade has been driven increasingly by developing countries and not by traditionally
developed countries. While the U.S., Japan and Europe have fueled previous explosions
in growth, the tide is shifting to emerging markets such as Brazil, Russia, India, and
China (so-called BRIC countries.) Interestingly, companies from Western Europe, the
United States, and Japan collectively produce more than three times as much in foreign
markets as they export. About a third of their exports and imports are transacted on an
intra-firm basis between their parent companies and their affiliated companies abroad or
between the affiliated companies themselves.
, The chapter points out that it is almost impossible for domestic company executives to
consider their domestic markets and domestic competition alone. The drive for
globalization is promoted through various means such as free trade, Internet commerce,
and advancement in technologies. International markets today are so much more than
mere importing and exporting (see Exhibit 1-2). The markets are so intertwined and
interdependent that separating international from domestic business may even be a futile
mental exercise.
Historically, international expansion has always been a strategy consideration after
domestic marketing and has therefore been reactionary to such things as a decline in
domestic sales and increased domestic competition. Global marketing is a proactive
response to the intertwined nature of business opportunities and competition that know no
political boundaries. It is a company’s willingness to adopt a global perspective instead of
a country-by-country or region-by-region perspective in developing a marketing strategy
for growth and profit that will sustain growth efforts in the 21st century.
9th Edition
by Masaaki Kotabe
Complete Chapter Solutions Manual
are included (Ch 1 to 20)
* There is no IM available by publisher
for Ch 16
** Immediate Download
** Swift Response
** All Chapters included
** Long Cases Answers
, CHAPTER 1
GLOBALIZATION IMPERATIVE
BRIEF OUTLINE
1. Why Global Marketing is Imperative
2. The Fluid Nature of Global Competition
3. Globalization of Markets: Convergence and Divergence
4. Evolution of Global Marketing
5. Appendix: Theories of International Trade and the Multinational Enterprise
CHAPTER OVERVIEW
In today’s business world, marketing products and services around the world,
transcending national and political boundaries, is a fascinating phenomenon. Growth in
international financial flows (which include foreign direct investment, portfolio
investment, and trading in currencies) has achieved a life of its own. World merchandise
exports in 2008 reached $16.3 trillion, up from $6 trillion in 2000. Despite the sharp drop
of world merchandise exports down to $12.5 trillion in 2009, total merchandise trade
volume bounced back to US$17.7 trillion in 2017. Nevertheless, the global economic
growth rate reached a stronger than expected 3 percent in 2017 -- a notable recovery from
a post-crisis low of 2.4 percent in 2016. These numbers are expected to increase as
barriers to international trade and financial flows get lower and lower.
Though the tremendous amount of money spent on international trade may be new, the
trade itself is as old as man. Early recorded history is full of stories of travel and trade
adventures. The Silk Road is one of the best examples which once connected East with
West from Xian (China) to Rome (Italy).
The landscape for international trade is continually evolving. World trade has grown
from $200 billion to $19 trillion in the last 40 years. Particularly, the growth of world
trade has been driven increasingly by developing countries and not by traditionally
developed countries. While the U.S., Japan and Europe have fueled previous explosions
in growth, the tide is shifting to emerging markets such as Brazil, Russia, India, and
China (so-called BRIC countries.) Interestingly, companies from Western Europe, the
United States, and Japan collectively produce more than three times as much in foreign
markets as they export. About a third of their exports and imports are transacted on an
intra-firm basis between their parent companies and their affiliated companies abroad or
between the affiliated companies themselves.
, The chapter points out that it is almost impossible for domestic company executives to
consider their domestic markets and domestic competition alone. The drive for
globalization is promoted through various means such as free trade, Internet commerce,
and advancement in technologies. International markets today are so much more than
mere importing and exporting (see Exhibit 1-2). The markets are so intertwined and
interdependent that separating international from domestic business may even be a futile
mental exercise.
Historically, international expansion has always been a strategy consideration after
domestic marketing and has therefore been reactionary to such things as a decline in
domestic sales and increased domestic competition. Global marketing is a proactive
response to the intertwined nature of business opportunities and competition that know no
political boundaries. It is a company’s willingness to adopt a global perspective instead of
a country-by-country or region-by-region perspective in developing a marketing strategy
for growth and profit that will sustain growth efforts in the 21st century.
